I'm 55 and my girlfriend and I have split up and we have joint ownership of the house. House was purchased around 10 years ago for 210,000. I think the current value is around 180,000 (after putting tons of improvements into it, but that's another story). She has choosen to live in another town and I need to stay in this town for probaby a year (before I retire) or maybe more. My question regards whether to refinance the house (I'd do a 10 year @ 3.12) or pay it off in cash (I recently liquidated 200,000 in mutual funds) and pay off my ex for her intrest. To further complicate the matter I'm not sure if I want to stay in this state after I retire. If I do stay in the state it would be in a town 45 minutes away from this house so I could oversee it as rental property. No matter where I end up living I plan on putting the fixed income portion of my portfolio into a couple of rental houses instead of bonds. The current interest rate on the house is about 5.87 so I'm really thowing money out the window right now. If I do decide to refinance I'd like rent it out and hold it at least until the loan is paid off before selling the property. Maybe by then the bond market will have nomalized.
Anyway I'd appreciated any advice/suggestions

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

You'll find multiple threads here on this very subject; suggest you investigate those. From a personal POV, I was recently faced with a similar choice (pay off Mtge or not) and I chose to pay it and retain the property (a rental) for income purposes. However, you will find other POVs on the referenced threads. One thing for sure, you can find a better Mtge rate.

Seems like you won't be there long. I'd think about selling it and renting. Clears up the house value if you and ex still have an interest in it. No big loan, no ties when you're ready to move in a year. On the downside, you'd have to move, though that is coming soon anyway.

Latest Threads

Social Knowledge Community

About Us

This community was started in 2002 as an alternative to a then fee only Motley Fool. The focus of the discussions is on topics related to early retirement and financial independence. The community is moderated to ensure a pleasant experience for our members.